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MS-62MANAGEMENT PROGRAMME

Term-End ExaminationDecember, 2009

MS-62 : SALES MANAGEMENT

Time : 3 hoursaximum Marks : 100(Weightage 70%)

Note :Attempt any three questions from Section A .Section B is compulsory.

(ii)ll questions carry equal marks.SECTION - A

(a) Explain the interdependence of sales anddistribution management in an FMCGcompany.

(b) Explain the various steps involved inpersonal selling process taking the exampleof diesel generating sets for industrialapplications.

(a) Explain the importance of non - verbalcommunication in selling process.

(b) Discuss the most commonly used methodsof imparting training to the sales force inan organisation.

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3 .a) What are the major objectives of territoryplanning ? Briefly explain the variousapproaches to territory design.

(b) Discuss the various types of compensationplans for the sales force. What are thefactors influencing the design ofcompensation schemes ?

4.rite short notes on any three of the following :Application of computers in salesmanagement.Types of sales organisation structures.

(c) Recruitment sources.Types o f Retail Displays.Sales management Audit.

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SECTION - B

5.ead the case given below and answer the questionsgiven at the end.

Western Oil India, is a regional producer ofoil products located in Gujarat state sellinggasoline, fuel oil and related products under theSwift brand. Total sales during 2007-2008 werein excess of Rs.100 crores. The company's salesorganization com prises of full-line sales personnelwho sold in two states of western India. Thefull-line sales people sold to oil wholesalers,distributors, commercial users and domestic fueloil consumers. The sales force was responsiblefor developing all new accounts. The salespersonnel were evaluated according to a singlecriterion, sales volume.

District sales managers determined eachsalesperson's volume from the weekly salesreports. Each report showed the previous week'ssales, both in amount and percentage of totalpurchases by name of account. The districtmanagers summarized the sales reports intomonthly and annual summary sales reports. Theamount and percentage of gain or loss was shownon both the monthly and annual reports. Inaddition, each salesperson's sales volumeperformance was compared with that of other

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sales personnel in the district and region. F inally,each salesperson's sales volume w as comparedwith his output the previous year and the trendof this sales volume was shown over the pastseveral years.Mr. Kumar, had recently been promotedfrom m anager to vice-president of sales. W henhe was a manager, he had believed that themethod of evaluating sales performance basedsolely on sales volume was an inaccurateappraisal of a person's effectiveness. He felt itwas especially unfair to the salespeople who spenta portion of their time assisting dealers withproblems such as special promotions, inventorycontrol, merchandising and administrationactivities that had no d irect effect on sales. Healso believed that evaluation based on sales volumealone ignored some fairly wide differences in thesales potential of ind ividual territories.

A s a result of the deficiencies he saw, Mr.Kumar suggested that the present method ofpersonnel evaluation should be supplemented bya merit-rating plan. This plan would incorporatesuch factors as work habits; effectiveness inmerchandising work, cooperation withmanagement, dealers and other sales personneland difference in territory potential.

The m anagers would rate the salespeoplesemiannually, then Mr. K umar would review the

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ratings. The numerical scores assigned to eachperformance factor (which had not yet beendetermined) w ould be totaled to yield a meritsscore for each salesperson. Finally, managerswould discuss this appraisal with each salesperson,counselling on strengths and weaknesses andmaking suggestions for improvement. A nd beforethe plan was put into operation, each managerwould explain the new evaluation method to thesalespeople in the district.

Reaction to Mr. Kumar's proposal wasmixed and was strongly opposed to the idea andopined that the new method of evaluation wastoo complex in nature and also time consumingfor the manager. It was also felt that the salespersonnel would be unhappy with an evaluationsystem that was based on so many subjectivefactors. The argument that salespeople would feelthat ratings were based on personal favouritismand other non-objective factors over which theyhad on control.Questions

Is the Western Oil company's presentmethod for evaluating sales personnelperformance adequate and fair ? Explain.How can Mr. Kumar answer othermanager's objections. Substantiate.

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